US Stock Market Overview – Stock Close Mixed as Nasdaq and S&P 500 Diverge

US stocks were mixed on Tuesday, as the markets attempted to rebound from Monday’s slide. The Dow and the S&P 500 faced headwinds while the Nasdaq moved higher ahead of key earnings from Microsoft. Later in the week, on Thursday, the markets will need to absorb earnings from Apple, Amazon, and Facebook. Pzifer released earnings ahead of the bell along with Merck which were better than expected while Eli Lilly missed the mark. The dollar moved lower, as US yields declined, despite stronger than expected durable goods order and Case Shiller Home Price figures. The VIX continued to move higher, as COVID cases continued to spread across the globe. WTI crude oil prices moved higher but failed to buoy the energy patch. Most sectors in the S&P 500 index were lower, led down by financials, utilities bucked the trend.

Durable Goods Order Continue to Accelerate

Durable goods orders increased by 1.9% in September after rising 0.4% in August. Durable goods orders were driven by a 4.1% rebound in orders for transportation equipment, which followed a 0.9% decline in August. Orders for motor vehicles and parts recovered 1.5% after falling 4.1% in August. Orders for non-defense capital goods excluding aircraft, increased 1.0% last month. Data for August was revised higher to show these so-called core capital goods orders increasing 2.1% instead of 1.9% as previously estimated. Expectations were for core capital goods orders to increase by 0.5%.

US Home Prices Rise More than Expected

US Home sale prices continue to accelerate higher as strong demand continues to outpace supply. Prices beat expectations, rising 5.7% annually in August, up from 4.8% in July, according to the S&P CoreLogic Case-Shiller National Home Price Index. The 10-City Composite posted a 4.7% gain, up from 3.5% in the previous month. The 20-City Composite rose 5.2% year-over-year, up from 4.1% in July.